Assured procurement rates, enhanced capital support, and mandatory blending targets aim to accelerate India’s CBG sector.

Centre’s New Scheme to Boost Compressed Biogas Production with Higher Prices and Subsidies.

The Centre is set to launch the Sampoorn Gobardhan Scheme on August 10 (World Biofuel Day) to accelerate compressed biogas (CBG) production through higher assured procurement prices and enhanced capital subsidies for new projects. The scheme, expected to receive Cabinet approval soon, aims to address execution challenges faced under the SATAT initiative, where only 219 CBG plants are operational despite over 1,094 letters of intent being issued. Officials expect the new policy to facilitate the establishment of 600–700 additional CBG plants within the next year. The move gains importance as CBG blending with CNG and PNG has become mandatory, with blending targets rising from 3% in 2026-27 to 5% by 2028-29. Major investments from companies such as Reliance Industries, Adani TotalEnergies, and Suzuki Motor Corporation are expected to further strengthen India’s clean energy transition and expand domestic biogas production.